Did you know that your Social Security benefit may not be totally tax free? The projected amount of Social Security may be taxed as income. As an example, currently if a married couples’ total household income is over $32,000, they will owe taxes on some their Social Security income. For purposes of calculating Social Security taxes, the government looks at: adjusted gross income plus tax-exempt income plus half of all Social Security benefits received If adding all those streams totals between $32,000 and $44,000, the couple pays income tax on up to 50% of the Social Security income. If those streams top $44,000, they could be paying federal income taxes on up to 85% of their Social Security income. The important idea to consider when calculating expected Social Security retirement income is that what you may see not be what you get to keep.